Corporate Priorities Shift as Firms Plan to Increase Worker Safety Budgets Through 2028

In a period marked by shifting workplace norms and heightened awareness around employee wellbeing, companies are reassessing how they approach Environmental, Health, and Safety (EHS) responsibilities. A recent survey by Ernst & Young (EY) reveals that a significant number of firms plan to increase their worker safety budgets over the next three years. This pivot underscores a broader trend: safety is no longer just about compliance—it’s a strategic investment tied to workforce retention, risk reduction, and ESG goals. As EHS priorities evolve, understanding how and why organizations are planning these budget increases is essential for professionals and stakeholders alike.

EY Survey Insights

According to Ernst & Young’s October 2025 survey, nearly 80% of global firms intend to raise their budgets for worker safety over the next three years. This increase signals a robust commitment to enhancing workplace safety infrastructure, with a clear shift from reactive compliance to proactive prevention. The study covered a wide range of industries, including manufacturing, energy, healthcare, and technology, revealing consistent patterns across sectors.

Key areas targeted for investment include physical safety improvements, environmental hazard mitigation, employee health programs, and digitized safety management systems. EY’s findings indicate that many firms view these enhancements as integral to broader ESG strategies, where health and safety metrics now contribute to sustainability reporting and investor confidence.

Another notable takeaway is the emphasis on workforce engagement. Companies reported plans to allocate part of their budgets to training, internal safety audits, and technology platforms that allow for real-time hazard reporting and feedback loops from employees. This data-driven approach reflects an evolving understanding of safety as a dynamic, organization-wide responsibility rather than a siloed compliance function.

These insights help frame the growing recognition that EHS excellence is not just a legal mandate but a business imperative.

Why the Shift? Drivers Behind the Budget Boost

Several converging forces are prompting organizations to elevate their investment in EHS initiatives. First, the residual impact of the COVID-19 pandemic has reshaped expectations around workplace health. Companies are under greater pressure to provide clean, safe, and flexible environments that prioritize both physical and mental wellbeing. This has extended EHS’s scope beyond traditional safety concerns to encompass broader human-centric strategies.

Second, the rise of Environmental, Social, and Governance (ESG) frameworks is accelerating the transformation of safety spending. Investors and regulators now expect transparent reporting on how organizations manage risks, including those related to occupational health and environmental impact. Budget increases in EHS are, in many cases, responses to these rising disclosure standards and the reputational benefits that come with strong ESG scores.

Third, there is a growing internal demand from employees. A new generation of workers expects employers to go beyond minimum compliance, offering wellness programs, psychological safety, and inclusive health policies. High-performing companies increasingly see EHS excellence as a driver of talent retention and employee satisfaction.

Finally, regulatory bodies across global markets have signaled tighter enforcement and evolving compliance standards. Organizations are anticipating these shifts by investing early in infrastructure, training, and digital platforms that support real-time compliance tracking and hazard prevention.

Together, these factors reflect a strategic realignment: EHS is no longer viewed as a cost center, but as a pillar of organizational resilience and performance.

How the Money Will Be Spent

With EHS budgets set to grow, companies are focusing their investments on initiatives that deliver measurable safety improvements and long-term value. One major area of allocation is technology and data integration. Tools such as wearable safety devices, AI-powered risk analytics, and cloud-based compliance platforms are gaining traction. These innovations provide real-time insights into workplace conditions and enable predictive interventions before incidents occur.

Training and education also represent a significant share of the planned expenditures. Employers are expanding beyond standard safety briefings to include interactive simulations, mobile learning modules, and leadership development tailored to EHS practices. This helps embed a safety-first mindset across all organizational levels.

Additionally, many companies are funding mental health and wellness programs, acknowledging the critical role psychological safety plays in overall worker health. This includes access to counseling services, stress management workshops, and initiatives to reduce burnout.

Lastly, firms are enhancing their capacity for auditing and risk management, particularly through third-party assessments and internal review systems. These efforts aim to identify vulnerabilities early and ensure continuous improvement in safety performance.

By targeting these areas, companies are not only addressing immediate safety concerns but also building a foundation for sustainable operational resilience.

Challenges in Execution

Despite the growing commitment to increased EHS funding, companies face several challenges in executing these plans effectively. Resource allocation remains a central issue—determining where and how to distribute new budget lines often requires balancing immediate safety needs with longer-term strategic goals. Smaller organizations, in particular, may struggle to scale their efforts without disrupting core operations.

Change management is another critical hurdle. Integrating new safety technologies, updating protocols, and fostering cultural shifts around EHS often meet resistance, especially in industries with long-standing practices. Ensuring buy-in from leadership and front-line workers alike is essential for successful implementation.

Measuring the impact of new investments can also prove difficult. While physical safety outcomes are often quantifiable, initiatives around mental health or organizational culture require more nuanced metrics and sustained tracking. Without clear KPIs, it becomes harder to justify ongoing funding or course-correct when initiatives fall short.

These challenges underscore the need for strategic planning, cross-departmental collaboration, and continuous evaluation.

Conclusion & Outlook

As organizations increasingly recognize the strategic value of robust EHS systems, the planned rise in safety budgets over the next three years reflects more than a response to regulatory pressure—it signals a shift in corporate philosophy. Health, safety, and wellbeing are becoming central pillars of operational and reputational success. While challenges in execution remain, the commitment to funding more comprehensive safety programs is a promising step forward. Looking ahead, companies that integrate EHS deeply into their culture and decision-making processes are likely to see gains not only in compliance and risk mitigation but also in employee engagement and long-term resilience.